We talk to a lot of automotive and heavy duty companies about ecommerce, and it’s certainly not for everyone. Here are the top 5 vetting questions we use to help companies decide whether B2C ecom is a good fit.
- Assess your business base and client base. Some distributors and manufacturers have sales and business pathways so ingrained into B2B that opening Pandora’s box of B2C could be a terrible fit. I’ve had distributors say they are just pleased to fulfill for other B2C entities and don’t want to touch B2C. But if the client base looks promising, and if there is any selling to customers directly, it could be a good fit. Oftentimes, a retail presence at all is a good signal that B2C could work. What a distributor does not want to do though is disrupt their B2B core business and upset their own retail customer base.
- Identify a budget for buildout and marketing spend. Builds can cost less than $100K, and some vendors out there try to sell ecom websites for less than $5K. That’s a tough one. We’ve never seen a client thrilled with their $5K ecom site, ever. Usually costs go up depending on integrations, customizations, and licenses. Get quotes, do thorough discovery, and try to know what it takes so there are no surprises. And allocate an ad spend traffic driving budget so it’s not just a build it and they will come situation.
- Are there enough internal resources to do B2C? Usually, everyone is already busy at a company. Is there the ability to hire an ecommerce manager internally? Consultants ask a lot of questions, and Sound Press has a whole process to go through to help identify these ecommerce questions, but a big set of questions is around internal resources. It is possible to bolt on a pick/pack/ship module to a Warehouse Management System to enable a B2C team to pull parts and ship.
- Know where parts data will come from. This can even be a legal land mine. Don’t hire an overseas company to screen scrape and then get sued by OE manufacturers for illegal image and data usage. Some companies have multiple sources of data going on in ecommerce. Internal is always best if you can make that happen for your organization, but not everyone has the resources to pull that off.
- Assess the costs of licenses and integrations. Often data can be quite pricey, but there are companies that license data and you can negotiate. Other integrations with ERPs and WMSs are out there, and some ecommerce backbones such as Magento/Adobe Commerce, Shopify, and others have those integrations, but it’s super helpful, and almost required to build an information system architecture to know where everything is coming from and what it all costs.
Sound Press usually takes clients through a discovery phase to map out exact planning, systems, and budgets for success. There is absolutely room for success in automotive and heavy-duty B2C, and we enjoy developing long-term partnerships with our clients to find those pathways for success and growth. We hope this is helpful, and if you want to talk about this just get in touch with us.
What Manufacturers Are Doing Right
The Importance of Regular Manufacturer Promotions in the Automotive Industry
In the dynamic landscape of the automotive industry, regular manufacturer promotions stand as the driving force behind sustained success. These promotions serve as a catalyst, fostering brand loyalty, increasing market share, and propelling innovation. From enticing discounts to exclusive limited-time offers, these campaigns not only captivate the consumer’s attention but also fortify the bond between the brand and its customers.
Firstly, regular promotions create a sense of urgency, compelling potential buyers to act swiftly, thereby boosting sales and clearing existing inventory. Additionally, these promotions allow manufacturers to showcase the latest technological advancements and features in their vehicles, keeping their offerings at the forefront of consumer consciousness.
Secondarily, in a fiercely competitive market, promotions serve as a strategic tool to differentiate a brand from its counterparts. Whether through cash rebates, low-interest financing, or value-added packages, manufacturers can tailor promotions to meet the diverse needs of their target audience, attracting a broader customer base.
Furthermore, consistent promotional activities contribute to sustaining a positive brand image, positioning the manufacturer as customer-centric and responsive to market trends. By fostering a sense of excitement and engagement, manufacturers not only attract new customers but also retain the loyalty of existing ones, creating a ripple effect that extends beyond individual campaigns.
Regular manufacturer promotions are indispensable in navigating the ever-evolving automotive industry. They not only drive immediate sales but also establish a foundation for enduring customer relationships and continued success in an increasingly competitive market.